As Reported by the House Public Utilities Committee

129th General Assembly
Regular Session
2011-2012
Sub. H. B. No. 95


Representative Stautberg 

Cosponsors: Representatives Blessing, Uecker, Mecklenborg, Balderson, Hayes, Goodwin, Martin, Beck, Coley, Roegner 



A BILL
To amend sections 4903.083, 4905.302, 4909.05, 1
4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 2
4909.17, 4909.18, 4909.19, 4928.18, 4929.05, 3
4929.051, 4929.11, and 4935.04 and to enact 4
sections 4909.191 and 4929.111 of the Revised Code 5
to permit certain rate-calculation adjustments for 6
natural gas companies, alter public notice 7
requirements for rate cases, and, for natural gas 8
companies, to make other regulatory changes 9
concerning audits, alternative rate plans, and 10
forecast reports, and allowing applications for 11
natural gas company capital expenditure programs.12


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1.  That sections 4903.083, 4905.302, 4909.05, 13
4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 4909.17, 4909.18, 14
4909.19, 4928.18, 4929.05, 4929.051, 4929.11, and 4935.04 be 15
amended and sections 4909.191 and 4929.111 of the Revised Code be 16
enacted to read as follows:17

       Sec. 4903.083. (A) For all cases involving applications for 18
an increase in rates pursuant to section 4909.18 of the Revised 19
Code the public utilities commission shall hold public hearings in 20
each municipal corporation in the affected service area having a 21
population in excess of one hundred thousand persons, provided 22
that, at least one public hearing shall be held in each affected 23
service area. At least one such hearing shall be held after 5:00 24
p.m. Notice of such hearing shall be published by the public 25
utilities commission once each week for two consecutive weeks in a 26
newspaper of general circulation in the service area. Said notice 27
shall state prominently the total amount of the revenue increase 28
requested in the application for the increase and shall list a 29
brief summary of the then known major issues in contention as set 30
forth in the respective parties' and intervenor's objections to 31
the staff report filed pursuant to section 4909.19 of the Revised 32
Code. The public utilities. The first publication of the notice 33
shall be made in its entirety and may be made in a preprinted 34
insert in the newspaper. The second publication may be abbreviated 35
if all of the following apply:36

        (1) The abbreviated notice is at least half the size of the 37
notice in the first publication.38

        (2) At the same time the abbreviated notice is published, the 39
notice in the first publication is posted in its entirety on the 40
newspaper's web site, if the newspaper has a web site, and the 41
commission's web site.42

        (3) The abbreviated notice contains a statement of the web 43
site posting or postings, as applicable, and instructions for 44
accessing the posting or postings.45

       (B) The commission shall determine a uniform format for the 46
content of all notices required under this section, and shall 47
consider costs and technological efficiencies in making that 48
determination. Defects in the contentpublication of said notice 49
shall not affect the legality or sufficiency of notices published 50
under this section provided that the public utilities commission 51
meets the substantial compliance provision ofhas substantially 52
complied with this section, as described in section 4905.09 of the 53
Revised Code.54

       Sec. 4905.302.  (A)(1) For the purpose of this section, the 55
term "purchased gas adjustment clause" means:56

       (a) A provision in a schedule of a gas company or natural gas 57
company that requires or allows the company to, without adherence 58
to section 4909.18 or 4909.19 of the Revised Code, adjust the 59
rates that it charges to its customers in accordance with any 60
fluctuation in the cost to the company of obtaining the gas that 61
it sells, that has occurred since the time any order has been 62
issued by the public utilities commission establishing rates for 63
the company pertaining to those customers;64

       (b) A provision in an ordinance adopted pursuant to section 65
743.26 or 4909.34 of the Revised Code or Section 4 of Article 66
XVIII, Ohio Constitution, with respect to which a gas company or 67
natural gas company is required or allowed to adjust the rates it 68
charges under such an ordinance in accordance with any fluctuation 69
in the cost to the company of obtaining the gas that it sells, 70
that has occurred since the time of the adoption of the ordinance.71

       (2) For the purpose of this section, the term "special 72
purchase" means any purchase of interstate natural gas, any 73
purchase of liquifiedliquefied natural gas, and any purchase of 74
synthetic natural gas from any source developed after the 75
effective date of this section, April 27, 1976, provided that this 76
purchase be of less than one hundred twenty days duration and the 77
price for this purchase is not regulated by the federal power 78
commission. For the purpose of this division, the expansion or 79
enlargement of a synthetic natural gas plant existing at such date 80
shall be considered a source so developed.81

       (3) For the purpose of this section, the term "residential 82
customer" means urban, suburban, and rural patrons of gas 83
companies and natural gas companies insofar as their needs for gas 84
are limited to their residence. Such term includes those patrons 85
whose rates have been set under an ordinance adopted pursuant to 86
sections 743.26 and 4909.34 of the Revised Code or Section 4 of 87
Article XVIII, Ohio Constitution.88

       (B) A purchased gas adjustment clause may not allow, and no 89
such clause may be interpreted to allow, a gas company or natural 90
gas company that has obtained an order from the public utilities 91
commission permitting the company to curtail the service of any 92
customer or class of customers other than residential customers, 93
such order being based on the company's inability to secure a 94
sufficient quantity of natural gas, to distribute the cost of any 95
special purchase made subsequent to the effective date of such 96
order, to the extent that such purchase decreases the level of 97
curtailment of any such customer or class of customers, to any 98
class of customers of the company that was not curtailed, to any 99
class of residential customers of the company, or to any class of 100
customers of the company whose level of curtailment was not 101
decreased and whose consumption increased as a result of, or in 102
connection with, the special purchase.103

       (C)(1) The commission shall promulgate a purchased gas 104
adjustment rule, consistent with this section, that establishes a 105
uniform purchased gas adjustment clause to be included in the 106
schedule of gas companies and natural gas companies subject to the 107
jurisdiction of the public utilities commission and that 108
establishes investigative procedures and proceedings including, 109
but not limited to, periodic reports, audits, and hearings.110

       (2) The commission shall not require that a management or 111
performance audit pertaining to the purchased gas adjustment 112
clause of a gas or natural gas company, or a hearing related to 113
such an audit, be conducted more frequently than once every three 114
years. Any such management or performance audit and any such 115
hearing shall be strictly limited to the gas or natural gas 116
company's gas or natural gas production and purchasing policies. 117
No such management or performance audit and no such hearing shall 118
extend in scope beyond matters that are necessary to determine the 119
following:120

       (a) That the gas or natural gas company's purchasing policies 121
are designed to meet the company's service requirements;122

       (b) That the gas or natural gas company's procurement 123
planning is sufficient to reasonably ensure reliable service at 124
optimal prices and consistent with the company's long-term 125
strategic supply plan;126

       (c) That the gas or natural gas company has reviewed existing 127
and potential supply sources;128

       (3) Unless otherwise ordered by the commission for good cause 129
shown and except as provided in division (D) of this section:130

       (a) The commission's staff shall conduct any audit or other 131
investigation of a natural gas company having fifteen thousand or 132
fewer customers in this state that may be required under the 133
purchased gas adjustment rule.134

       (b) Except as provided in section 4905.10 of the Revised 135
Code, the commission shall not impose upon such company any fee, 136
expense, or cost of such audit or other investigation or any 137
related hearing under this section.138

       (3)(4) Unless otherwise ordered by the commission for good 139
cause shown either by an interested party or by the commission on 140
its own motion, no natural gas company having fifteen thousand or 141
fewer customers in this state shall be subject under the purchased 142
gas adjustment rule to any audit or other investigation or any 143
related hearing, other than a financial audit or, as necessary, 144
any hearing related to a financial audit.145

       (4)(5) In issuing an order under division (C)(2)(3) or (3)(4)146
of this section, the commission shall file a written opinion 147
setting forth the reasons showing good cause under such division 148
and the specific matters to be audited, investigated, or subjected 149
to hearing. Nothing in division (C)(2)(3) or (3)(4) of this 150
section relieves such a natural gas company from the duty to file 151
such information as the commission may require under the rule for 152
the purpose of showing that a company has charged its customers 153
accurately for the cost of gas obtained.154

       (D) A natural gas company that does not sell natural gas 155
under a purchased gas adjustment clause shall not be subject to 156
this section.157

       (E) Nothing in this section or any other provision of law 158
shall be construed to mean that the commission, in the event of 159
any cost distribution allowed under this section, may issue an 160
order pursuant to which the prudent and reasonable cost of gas to 161
a gas company or natural gas company of any special purchase may 162
not be recovered by the company. For the purpose of this division, 163
such cost of gas neither includes any applicable franchise taxes 164
nor the ordinary losses of gas experienced by the company in the 165
process of transmission and distribution.166

       (E)(F) The commission shall not at any time prevent or 167
restrain such costs as are distributable under this section from 168
being so distributed, unless the commission has reason to believe 169
that an arithmetic or accounting inaccuracy exists with respect to 170
such a distribution or that the company has not accurately 171
represented the amount of the cost of a special purchase, or has 172
followed imprudent or unreasonable procurement policies and 173
practices, has made errors in the estimation of cubic feet sold, 174
or has employed such other practices, policies, or factors as the 175
commission considers inappropriate.176

       (F)(G) The cost of natural gas under this section shall not 177
include any cost recovered by a natural gas company pursuant to 178
section 4929.25 of the Revised Code.179

       Sec. 4909.05.  As used in this section:180

       (A) A "lease purchase agreement" is an agreement pursuant to 181
which a public utility leasing property is required to make rental 182
payments for the term of the agreement and either the utility is 183
granted the right to purchase the property upon the completion of 184
the term of the agreement and upon the payment of an additional 185
fixed sum of money or title to the property vests in the utility 186
upon the making of the final rental payment.187

       (B) A "leaseback" is the sale or transfer of property by a 188
public utility to another person contemporaneously followed by the 189
leasing of the property to the public utility on a long-term 190
basis.191

       (C) The public utilities commission shall prescribe the form 192
and details of the valuation report of the property of each public 193
utility or railroad in the state. Such report shall include all 194
the kinds and classes of property, with the value of each, owned195
or, held, or, with respect to a natural gas company, projected to 196
be owned or held as of the date certain, by each public utility or 197
railroad used and useful, or, with respect to a natural gas 198
company, projected to be used and useful as of the date certain,199
for the service and convenience of the public. Such report shall 200
contain the following facts in detail:201

       (C)(1) The original cost of each parcel of land owned in fee 202
and in use at the date certain, or, with respect to a natural gas 203
company, projected to be owned in fee and in use as of the date 204
certain, determined by the commission; and also a statement of the 205
conditions of acquisition, whether by direct purchase, by 206
donation, by exercise of the power of eminent domain, or 207
otherwise;208

       (D)(2) The actual acquisition cost, not including periodic 209
rental fees, of rights-of-way, trailways, or other land rights 210
held, or, with respect to a natural gas company, projected to be 211
held as of the date certain, by virtue of easements, leases, or 212
other forms of grants of rights as to usage;213

       (E)(3) The original cost of all other kinds and classes of 214
property used and useful, or, with respect to a natural gas 215
company, projected to be used and useful as of the date certain,216
in the rendition of service to the public. Such original costs of 217
property, other than land owned in fee, shall be the cost, as 218
determined to be reasonable by the commission, to the person that 219
first dedicated or dedicates the property to the public use and 220
shall be set forth in property accounts and subaccounts as 221
prescribed by the commission. To the extent that the costs of 222
property comprising a coal research and development facility, as 223
defined in section 1555.01 of the Revised Code, or a coal 224
development project, as defined in section 1551.30 of the Revised 225
Code, have been allowed for recovery as Ohio coal research and 226
development costs under section 4905.304 of the Revised Code, none 227
of those costs shall be included as a cost of property under this 228
division.229

       (F)(4) The cost of property constituting all or part of a 230
project leased to or used by the utility, or, with respect to a 231
natural gas company, projected to be leased to or used by the 232
utility as of the date certain, under Chapter 165., 3706., 6121., 233
or 6123. of the Revised Code and not included under division 234
(E)(C)(3) of this section exclusive of any interest directly or 235
indirectly paid by the utility with respect thereto whether or not 236
capitalized;237

       (G)(5) In the discretion of the commission, the cost to a 238
utility, in an amount determined to be reasonable by the 239
commission, of property constituting all or part of a project 240
leased to the utility, or, with respect to a natural gas company, 241
projected to be leased to the utility as of the date certain,242
under a lease purchase agreement or a leaseback and not included 243
under division (E)(C)(3) of this section exclusive of any interest 244
directly or indirectly paid by the utility with respect thereto 245
whether or not capitalized;246

       (H)(6) The proper and adequate reserve for depreciation, as 247
determined to be reasonable by the commission;248

       (I)(7) Any sums of money or property that the company may 249
have received, or, with respect to a natural gas company, is 250
projected to receive as of the date certain, as total or partial 251
defrayal of the cost of its property;252

       (J)(8) The valuation of the property of the company, which 253
shall be the sum of the amounts contained in the report pursuant 254
to divisions (C), (D), (E), (F), and (G)(1) to (5) of this 255
section, less the sum of the amounts contained in the report 256
pursuant to divisions (H)(C)(6) and (I)(7) of this section.257

       The report shall show separately the property used and useful 258
to such public utility or railroad in the furnishing of the 259
service to the public, and the property held by such public 260
utility or railroad for other purposes, and the property projected 261
to be used and useful to or held by a natural gas company as of 262
the date certain, and such other items as the commission considers 263
proper. The commission may require an additional report showing 264
the extent to which the property is used and useful, or, with 265
respect to a natural gas company, projected to be used and useful 266
as of the date certain. Such reports shall be filed in the office 267
of the commission for the information of the governor and the 268
general assembly.269

       Sec. 4909.06.  The investigation and report required by 270
section 4909.05 of the Revised Code shall show, when the public 271
utilities commission deems it necessary, the amounts, dates, and 272
rates of interest of all bonds outstanding against each public 273
utility or railroad, the property upon which such bonds are a 274
lien, the amounts paid for them, and, the original capital stock 275
and the moneys received by any such public utility or railroad by 276
reason of any issue of stock, bonds, or other securities. Such 277
report shall also show the net and gross receipts of such public 278
utility or railroad and the method by which moneys were expended 279
or paid out and the purpose of such payments. The commission may 280
prescribe the procedure to be followed in making the investigation 281
and valuation, the form in which the results of the ascertainment 282
of the value of each public utility or railroad shall be 283
submitted, and the classifications of the elements that constitute 284
the ascertained value. Such investigation shall also show the 285
value of the property of every public utility or railroad as a 286
whole, and if such property is in more than one county, the value 287
of its property in each of such counties.288

       "Valuation" and "value," as used in this section, may 289
include, with respect to a natural gas company, projected 290
valuation and value as of the date certain, if applicable because 291
of a future date certain under section 4909.15 of the Revised 292
Code.293

       Sec. 4909.07.  The public utilities commission, during the 294
making of the valuation provided for in sections 4909.04 to 295
4909.13, inclusive, of the Revised Code, and after its completion, 296
shall in like manner keep itself informed through its engineers, 297
experts, and other assistants of all extensions, improvements, or 298
other changes in the condition and value of the property of all 299
public utilities or railroads and shall ascertain the value of 300
such extensions, improvements, and changes. The commission shall, 301
as is required for the proper regulation of such public utilities 302
or railroads, revise and correct its valuations of property, 303
showing such revisions and corrections as a whole and as to each 304
county. Such revisions and corrections shall be filed in the same 305
manner as original reports.306

       "Valuation" and "value," as used in this section, may 307
include, with respect to a natural gas company, projected 308
valuation and value as of the date certain, if applicable because 309
of a future date certain under section 4909.15 of the Revised 310
Code.311

       Sec. 4909.08.  When the public utilities commission has 312
completed the valuation of the property of any public utility or 313
railroad and before such valuation becomes final, it shall give 314
notice by registered letter to such public utility or railroad, 315
and if a substantial portion of said public utility or railroad is 316
situated in a municipal corporation, then to the mayor of such 317
municipal corporation, stating the valuations placed upon the 318
several kinds and classes of property of such public utility or 319
railroad and upon the property as a whole and give such further 320
notice by publication or otherwise as it shall deem necessary to321
appraiseapprise the public of such valuation. If, within thirty 322
days after such notification, no protest has been filed with the 323
commission, such valuation becomes final. If notice of protest has 324
been filed by any public utility or railroad, the commission shall 325
fix a time for hearing such protest and shall consider at such 326
hearing any matter material thereto presented by such public 327
utility, railroad, or municipal corporation, in support of its 328
protest or by any representative of the public against such 329
protest. If, after the hearing of any protest of any valuation so 330
fixed, the commission is of the opinion that its inventory is 331
incomplete or inaccurate or that its valuation is incorrect, it 332
shall make such changes as are necessary and shall issue an order 333
making such corrected valuations final. A final valuation by the 334
commission and all classifications made for the ascertainment of 335
such valuations shall be public and are prima-facie evidence 336
relative to the value of the property.337

       "Valuation" and "value," as used in this section, may 338
include, with respect to a natural gas company, projected 339
valuation and value as of the date certain, if applicable because 340
of a future date certain under section 4909.15 of the Revised 341
Code.342

       Sec. 4909.15.  (A) The public utilities commission, when 343
fixing and determining just and reasonable rates, fares, tolls, 344
rentals, and charges, shall determine:345

       (1) The valuation as of the date certain of the property of 346
the public utility used and useful or, with respect to a natural 347
gas company, projected to be used and useful as of the date 348
certain, in rendering the public utility service for which rates 349
are to be fixed and determined. The valuation so determined shall 350
be the total value as set forth in division (J)(C)(8) of section 351
4909.05 of the Revised Code, and a reasonable allowance for 352
materials and supplies and cash working capital, as determined by 353
the commission.354

       The commission, in its discretion, may include in the 355
valuation a reasonable allowance for construction work in progress 356
but, in no event, may such an allowance be made by the commission 357
until it has determined that the particular construction project 358
is at least seventy-five per cent complete.359

       In determining the percentage completion of a particular 360
construction project, the commission shall consider, among other 361
relevant criteria, the per cent of time elapsed in construction; 362
the per cent of construction funds, excluding allowance for funds 363
used during construction, expended, or obligated to such 364
construction funds budgeted where all such funds are adjusted to 365
reflect current purchasing power; and any physical inspection 366
performed by or on behalf of any party, including the commission's 367
staff.368

       A reasonable allowance for construction work in progress 369
shall not exceed ten per cent of the total valuation as stated in 370
this division, not including such allowance for construction work 371
in progress.372

       Where the commission permits an allowance for construction 373
work in progress, the dollar value of the project or portion 374
thereof included in the valuation as construction work in progress 375
shall not be included in the valuation as plant in service until 376
such time as the total revenue effect of the construction work in 377
progress allowance is offset by the total revenue effect of the 378
plant in service exclusion. Carrying charges calculated in a 379
manner similar to allowance for funds used during construction 380
shall accrue on that portion of the project in service but not 381
reflected in rates as plant in service, and such accrued carrying 382
charges shall be included in the valuation of the property at the 383
conclusion of the offset period for purposes of division (J)(C)(8)384
of section 4909.05 of the Revised Code.385

       From and after April 10, 1985, no allowance for construction 386
work in progress as it relates to a particular construction 387
project shall be reflected in rates for a period exceeding 388
forty-eight consecutive months commencing on the date the initial 389
rates reflecting such allowance become effective, except as 390
otherwise provided in this division.391

       The applicable maximum period in rates for an allowance for 392
construction work in progress as it relates to a particular 393
construction project shall be tolled if, and to the extent, a 394
delay in the in-service date of the project is caused by the 395
action or inaction of any federal, state, county, or municipal 396
agency having jurisdiction, where such action or inaction relates 397
to a change in a rule, standard, or approval of such agency, and 398
where such action or inaction is not the result of the failure of 399
the utility to reasonably endeavor to comply with any rule, 400
standard, or approval prior to such change.401

       In the event that such period expires before the project goes 402
into service, the commission shall exclude, from the date of 403
expiration, the allowance for the project as construction work in 404
progress from rates, except that the commission may extend the 405
expiration date up to twelve months for good cause shown.406

       In the event that a utility has permanently canceled, 407
abandoned, or terminated construction of a project for which it 408
was previously permitted a construction work in progress 409
allowance, the commission immediately shall exclude the allowance 410
for the project from the valuation.411

       In the event that a construction work in progress project 412
previously included in the valuation is removed from the valuation 413
pursuant to this division, any revenues collected by the utility 414
from its customers after April 10, 1985, that resulted from such 415
prior inclusion shall be offset against future revenues over the 416
same period of time as the project was included in the valuation 417
as construction work in progress. The total revenue effect of such 418
offset shall not exceed the total revenues previously collected.419

       In no event shall the total revenue effect of any offset or 420
offsets provided under division (A)(1) of this section exceed the 421
total revenue effect of any construction work in progress 422
allowance.423

       (2) A fair and reasonable rate of return to the utility on 424
the valuation as determined in division (A)(1) of this section;425

       (3) The dollar annual return to which the utility is entitled 426
by applying the fair and reasonable rate of return as determined 427
under division (A)(2) of this section to the valuation of the 428
utility determined under division (A)(1) of this section;429

       (4) The cost to the utility of rendering the public utility 430
service for the test period used for the determination under 431
division (C)(1) of this section, less the total of any interest on 432
cash or credit refunds paid, pursuant to section 4909.42 of the 433
Revised Code, by the utility during the test period.434

       (a) Federal, state, and local taxes imposed on or measured by 435
net income may, in the discretion of the commission, be computed 436
by the normalization method of accounting, provided the utility 437
maintains accounting reserves that reflect differences between 438
taxes actually payable and taxes on a normalized basis, provided 439
that no determination as to the treatment in the rate-making 440
process of such taxes shall be made that will result in loss of 441
any tax depreciation or other tax benefit to which the utility 442
would otherwise be entitled, and further provided that such tax 443
benefit as redounds to the utility as a result of such a 444
computation may not be retained by the company, used to fund any 445
dividend or distribution, or utilized for any purpose other than 446
the defrayal of the operating expenses of the utility and the 447
defrayal of the expenses of the utility in connection with 448
construction work.449

       (b) The amount of any tax credits granted to an electric 450
light company under section 5727.391 of the Revised Code for Ohio 451
coal burned prior to January 1, 2000, shall not be retained by the 452
company, used to fund any dividend or distribution, or utilized 453
for any purposes other than the defrayal of the allowable 454
operating expenses of the company and the defrayal of the 455
allowable expenses of the company in connection with the 456
installation, acquisition, construction, or use of a compliance 457
facility. The amount of the tax credits granted to an electric 458
light company under that section for Ohio coal burned prior to 459
January 1, 2000, shall be returned to its customers within three 460
years after initially claiming the credit through an offset to the 461
company's rates or fuel component, as determined by the 462
commission, as set forth in schedules filed by the company under 463
section 4905.30 of the Revised Code. As used in division 464
(A)(4)(c)(b) of this section, "compliance facility" has the same 465
meaning as in section 5727.391 of the Revised Code.466

       (B) The commission shall compute the gross annual revenues to 467
which the utility is entitled by adding the dollar amount of 468
return under division (A)(3) of this section to the cost, for the 469
test period used for the determination under division (C)(1) of 470
this section, of rendering the public utility service for the test 471
period under division (A)(4) of this section.472

       (C)(1) Except as provided in division (D) of this section, 473
the revenues and expenses of the utility shall be determined 474
during a test period. The utility may propose a test period, 475
unless otherwise ordered by the commission, shall be thefor this 476
determination that is any twelve-month period beginning not more 477
than six months prior to the date the application is filed and 478
ending six months subsequent to that date. In no event shall the 479
test period endnot more than nine months subsequent to thethat480
date the application is filed. The test period for determining481
revenues and expenses of the utility shall be determined during482
the test period proposed by the utility, unless otherwise ordered 483
by the commission. The484

       (2) The date certain shall be not later than the date of 485
filing, except that it shall be, for a natural gas company, not 486
later than the end of the test period.487

       (D) A natural gas company may propose adjustments to the 488
revenues and expenses to be determined under division (C)(1) of 489
this section for any changes that are, during the test period or 490
the twelve-month period immediately following the test period, 491
reasonably expected to occur. The natural gas company shall 492
identify and quantify, individually, any proposed adjustments. The 493
commission shall incorporate the proposed adjustments into the 494
determination if the adjustments are just and reasonable.495

       (E) When the commission is of the opinion, after hearing and 496
after making the determinations under divisions (A) and (B) of 497
this section, that any rate, fare, charge, toll, rental, schedule, 498
classification, or service, or any joint rate, fare, charge, toll, 499
rental, schedule, classification, or service rendered, charged, 500
demanded, exacted, or proposed to be rendered, charged, demanded, 501
or exacted, is, or will be, unjust, unreasonable, unjustly 502
discriminatory, unjustly preferential, or in violation of law, 503
that the service is, or will be, inadequate, or that the maximum 504
rates, charges, tolls, or rentals chargeable by any such public 505
utility are insufficient to yield reasonable compensation for the 506
service rendered, and are unjust and unreasonable, the commission 507
shall:508

       (1) With due regard among other things to the value of all 509
property of the public utility actually used and useful for the 510
convenience of the public as determined under division (A)(1) of 511
this section, excluding from such value the value of any franchise 512
or right to own, operate, or enjoy the same in excess of the 513
amount, exclusive of any tax or annual charge, actually paid to 514
any political subdivision of the state or county, as the 515
consideration for the grant of such franchise or right, and 516
excluding any value added to such property by reason of a monopoly 517
or merger, with due regard in determining the dollar annual return 518
under division (A)(3) of this section to the necessity of making 519
reservation out of the income for surplus, depreciation, and 520
contingencies, and;521

       (2) With due regard to all such other matters as are proper, 522
according to the facts in each case,523

       (a) Including a fair and reasonable rate of return determined 524
by the commission with reference to a cost of debt equal to the 525
actual embedded cost of debt of such public utility,526

       (b) But not including the portion of any periodic rental or 527
use payments representing that cost of property that is included 528
in the valuation report under divisions (F)(C)(4) and (G)(5) of 529
section 4909.05 of the Revised Code, fix and determine the just 530
and reasonable rate, fare, charge, toll, rental, or service to be 531
rendered, charged, demanded, exacted, or collected for the 532
performance or rendition of the service that will provide the 533
public utility the allowable gross annual revenues under division 534
(B) of this section, and order such just and reasonable rate, 535
fare, charge, toll, rental, or service to be substituted for the 536
existing one. After such determination and order no change in the 537
rate, fare, toll, charge, rental, schedule, classification, or 538
service shall be made, rendered, charged, demanded, exacted, or 539
changed by such public utility without the order of the 540
commission, and any other rate, fare, toll, charge, rental, 541
classification, or service is prohibited.542

       (E)(F) Upon application of any person or any public utility, 543
and after notice to the parties in interest and opportunity to be 544
heard as provided in Chapters 4901., 4903., 4905., 4907., 4909., 545
4921., and 4923. of the Revised Code for other hearings, has been 546
given, the commission may rescind, alter, or amend an order fixing 547
any rate, fare, toll, charge, rental, classification, or service, 548
or any other order made by the commission. Certified copies of 549
such orders shall be served and take effect as provided for 550
original orders.551

       Sec. 4909.156.  In fixing the just, reasonable, and 552
compensatory rates, joint rates, tolls, classifications, charges, 553
or rentals to be observed and charged for service by any public 554
utility, the public utilities commission shall, in action upon an 555
application filed pursuant to section 4909.18 of the Revised Code, 556
require a public utility to file a report showing the 557
proportionate amounts of the valuation of the property of the 558
utility, as determined under section 4909.05 or the Revised Code, 559
and the proportionate amounts of the revenues and expenses of the 560
utility that are proposed to be considered as attributable to the 561
service area involved in the application.562

       "Valuation," as used in this section, may include, with 563
respect to a natural gas company, projected valuation as of the 564
date certain, if applicable because of a future date certain under 565
section 4909.15 of the Revised Code.566

       Sec. 4909.17.  No rate, joint rate, toll, classification, 567
charge, or rental, no change in any rate, joint rate, toll, 568
classification, charge, or rental, and no regulation or practice 569
affecting any rate, joint rate, toll, classification, charge, or 570
rental of a public utility shall become effective until the public 571
utilities commission, by order, determines it to be just and 572
reasonable, except as provided in this section and sections 573
4909.18 and, 4909.19, and 4909.191 of the Revised Code. Such 574
sections do not apply to any rate, joint rate, toll, 575
classification, charge, or rental, or any regulation or practice 576
affecting the same, of railroads, street and electric railways, 577
motor transportation companies, and pipe line companies. 578

       Sec. 4909.18.  Any public utility desiring to establish any 579
rate, joint rate, toll, classification, charge, or rental, or to 580
modify, amend, change, increase, or reduce any existing rate, 581
joint rate, toll, classification, charge, or rental, or any 582
regulation or practice affecting the same, shall file a written 583
application with the public utilities commission. Except for 584
actions under section 4909.16 of the Revised Code, no public 585
utility may issue the notice of intent to file an application 586
pursuant to division (B) of section 4909.43 of the Revised Code to 587
increase any existing rate, joint rate, toll, classification, 588
charge, or rental, until a final order under this section has been 589
issued by the commission on any pending prior application to 590
increase the same rate, joint rate, toll, classification, charge, 591
or rental or until two hundred seventy-five days after filing such 592
application, whichever is sooner. Such application shall be 593
verified by the president or a vice-president and the secretary or 594
treasurer of the applicant. Such application shall contain a 595
schedule of the existing rate, joint rate, toll, classification, 596
charge, or rental, or regulation or practice affecting the same, a 597
schedule of the modification amendment, change, increase, or 598
reduction sought to be established, and a statement of the facts 599
and grounds upon which such application is based. If such 600
application proposes a new service or the use of new equipment, or 601
proposes the establishment or amendment of a regulation, the 602
application shall fully describe the new service or equipment, or 603
the regulation proposed to be established or amended, and shall 604
explain how the proposed service or equipment differs from 605
services or equipment presently offered or in use, or how the 606
regulation proposed to be established or amended differs from 607
regulations presently in effect. The application shall provide 608
such additional information as the commission may require in its 609
discretion. If the commission determines that such application is 610
not for an increase in any rate, joint rate, toll, classification, 611
charge, or rental, the commission may permit the filing of the 612
schedule proposed in the application and fix the time when such 613
schedule shall take effect. If it appears to the commission that 614
the proposals in the application may be unjust or unreasonable, 615
the commission shall set the matter for hearing and shall give 616
notice of such hearing by sending written notice of the date set 617
for the hearing to the public utility and publishing notice of the 618
hearing one time in a newspaper of general circulation in each 619
county in the service area affected by the application. At such 620
hearing, the burden of proof to show that the proposals in the 621
application are just and reasonable shall be upon the public 622
utility. After such hearing, the commission shall, where 623
practicable, issue an appropriate order within six months from the 624
date the application was filed.625

       If the commission determines that said application is for an 626
increase in any rate, joint rate, toll, classification, charge, or 627
rental there shall also, unless otherwise ordered by the 628
commission, be filed with the application in duplicate the 629
following exhibits:630

       (A) A report of its property used and useful, or, with 631
respect to a natural gas company, projected to be used and useful 632
as of the date certain, in rendering the service referred to in 633
such application, as provided in section 4909.05 of the Revised 634
Code;635

       (B) A complete operating statement of its last fiscal year, 636
showing in detail all its receipts, revenues, and incomes from all 637
sources, all of its operating costs and other expenditures, and 638
any analysis such public utility deems applicable to the matter 639
referred to in said application;640

       (C) A statement of the income and expense anticipated under 641
the application filed;642

       (D) A statement of financial condition summarizing assets, 643
liabilities, and net worth;644

       (E) A proposed notice for newspaper publication fully 645
disclosing the substance of the application. The notice shall 646
prominently state that any person, firm, corporation, or 647
association may file, pursuant to section 4909.19 of the Revised 648
Code, an objection to such increase which may allege that such 649
application contains proposals that are unjust and discriminatory 650
or unreasonable. The notice shall further include the average 651
percentage increase in rate that a representative industrial, 652
commercial, and residential customer will bear should the increase 653
be granted in full;654

       (F) Such other information as the commission may require in 655
its discretion.656

       Sec. 4909.19. (A) Upon the filing of any application for 657
increase provided for by section 4909.18 of the Revised Code the 658
public utility shall forthwith publish the substance and prayer659
notice of such application, in a form approved by the public 660
utilities commission, once a week for threetwo consecutive weeks 661
in a newspaper published and in general circulation throughout the 662
territory in which such public utility operates and directly663
affected by the matters referred to in said application, and. The 664
notice shall include instructions for direct electronic access to 665
the application or other documents on file with the public 666
utilities commission. The first publication of the notice shall be 667
made in its entirety and may be made in a preprinted insert in the 668
newspaper. The second publication may be abbreviated if all of the 669
following apply:670

        (1) The abbreviated notice is at least one-fourth of the size 671
of the notice in the first publication.672

        (2) At the same time the abbreviated notice is published, the 673
notice in the first publication is posted in its entirety on the 674
newspaper's web site, if the newspaper has a web site, and the 675
commission's web site.676

        (3) The abbreviated notice contains a statement of the web 677
site posting or postings, as applicable, and instructions for 678
accessing the posting or postings.679

        (B) The commission shall determine a format for the content 680
of all notices required under this section, and shall consider 681
costs and technological efficiencies in making that determination. 682
Defects in the publication of said notice shall not affect the 683
legality or sufficiency of notices published under this section 684
provided that the commission has substantially complied with this 685
section, as described in section 4905.09 of the Revised Code.686

       (C) The commission shall at once cause an investigation to be 687
made of the facts set forth in said application and the exhibits 688
attached thereto, and of the matters connected therewith. Within a 689
reasonable time as determined by the commission after the filing 690
of such application, a written report shall be made and filed with 691
the commission, a copy of which shall be sent by certified mail to 692
the applicant, the mayor of any municipal corporation affected by 693
the application, and to such other persons as the commission deems 694
interested. If no objection to such report is made by any party 695
interested within thirty days after such filing and the mailing of 696
copies thereof, the commission shall fix a date within ten days 697
for the final hearing upon said application, giving notice thereof 698
to all parties interested. At such hearing the commission shall 699
consider the matters set forth in said application and make such 700
order respecting the prayer thereof as to it seems just and 701
reasonable.702

       If objections are filed with the commission, the commission 703
shall cause a pre-hearing conference to be held between all 704
parties, intervenors, and the commission staff in all cases 705
involving more than one hundred thousand customers.706

       If objections are filed with the commission within thirty 707
days after the filing of such report, the application shall be 708
promptly set down for hearing of testimony before the commission 709
or be forthwith referred to an attorney examiner designated by the 710
commission to take all the testimony with respect to the 711
application and objections which may be offered by any interested 712
party. The commission shall also fix the time and place to take 713
testimony giving ten days' written notice of such time and place 714
to all parties. The taking of testimony shall commence on the date 715
fixed in said notice and shall continue from day to day until 716
completed. The attorney examiner may, upon good cause shown, grant 717
continuances for not more than three days, excluding Saturdays, 718
Sundays, and holidays. The commission may grant continuances for a 719
longer period than three days upon its order for good cause shown. 720
At any hearing involving rates or charges sought to be increased, 721
the burden of proof to show that the increased rates or charges 722
are just and reasonable shall be on the public utility.723

       When the taking of testimony is completed, a full and 724
complete record of such testimony noting all objections made and 725
exceptions taken by any party or counsel, shall be made, signed by 726
the attorney examiner, and filed with the commission. Prior to the 727
formal consideration of the application by the commission and the 728
rendition of any order respecting the prayer of the application, a 729
quorum of the commission shall consider the recommended opinion 730
and order of the attorney examiner, in an open, formal, public 731
proceeding in which an overview and explanation is presented 732
orally. Thereafter, the commission shall make such order 733
respecting the prayer of such application as seems just and 734
reasonable to it.735

       In all proceedings before the commission in which the taking 736
of testimony is required, except when heard by the commission, 737
attorney examiners shall be assigned by the commission to take 738
such testimony and fix the time and place therefor, and such 739
testimony shall be taken in the manner prescribed in this section. 740
All testimony shall be under oath or affirmation and taken down 741
and transcribed by a reporter and made a part of the record in the 742
case. The commission may hear the testimony or any part thereof in 743
any case without having the same referred to an attorney examiner 744
and may take additional testimony. Testimony shall be taken and a 745
record made in accordance with such general rules as the 746
commission prescribes and subject to such special instructions in 747
any proceedings as it, by order, directs.748

       Sec. 4909.191. (A) If the public utilities commission, under 749
division (D) of section 4909.15 of the Revised Code, incorporated 750
proposed adjustments to revenues and expenses into the 751
commission's determination under that section, the natural gas 752
company shall, not later than ninety days after actual data for 753
all of the incorporated adjustments becomes known, submit to the 754
commission proposed rate or charge adjustments that provide for 755
the recalculation of rates or charges, reflective of 756
customer-class responsibility, corresponding to the differences, 757
if any, between the incorporated adjustments to revenues and 758
expenses and the actual revenues and expenses associated with the 759
incorporated adjustments.760

       (B) If the commission incorporated projected value or 761
valuation of property into the commission's determination under 762
division (A)(1) of section 4909.15 of the Revised Code, the 763
natural gas company shall, not later than ninety days after data 764
for the actual value or valuation as of the date certain becomes 765
known, submit to the commission proposed rate or charge 766
adjustments that provide for the recalculation of rates or 767
charges, reflective of customer-class responsibility, 768
corresponding to the differences, if any, between the projected 769
value or valuation incorporated into the commission's 770
determination and the actual value or valuation as of the date 771
certain.772

        (C) The commission shall review the proposed rate or charge 773
adjustments submitted under divisions (A) and (B) of this section. 774
The review shall not include a hearing unless the commission finds 775
that the proposed rate or charge adjustments may be unreasonable, 776
in which case the commission may, in its discretion, schedule the 777
matter for a hearing.778

        (D) The commission shall issue, not later than one hundred 779
fifty days after the date that any proposed rate or charge 780
adjustments are submitted under division (A) or (B) of this 781
section, a final order on the proposed rate or charge adjustments. 782
Any rate or charge adjustments authorized under this division 783
shall be limited to amounts that are not greater than those 784
consistent with the proposed adjustments to revenues and expenses 785
that were incorporated into the commission's determination under 786
division (D) of section 4909.15 of the Revised Code, and not 787
greater than those consistent with the incorporated projected 788
value or valuation. In no event shall rate or charge adjustments 789
authorized under this division be upward.790

        After the commission has issued such a final order, the 791
natural gas company, if applicable, shall submit to the commission 792
proposed reconciliation adjustments that refund to customers the 793
difference between the actual revenues collected by the natural 794
gas company, under the rates and charges determined by the 795
commission under section 4909.15 of the Revised Code, and the 796
rates or charges recalculated under the adjustments authorized 797
under this division. The reconciliation adjustments shall be 798
effective for a twelve-month period.799

       (E) The reconciliation adjustments ordered under division (D) 800
of this section may be subject to a final reconciliation by the 801
commission. Any such final reconciliation shall occur after the 802
twelve-month period described in division (D) of this section.803

       Sec. 4928.18.  (A) Notwithstanding division (D)(E)(2)(a) of 804
section 4909.15 of the Revised Code, nothing in this chapter 805
prevents the public utilities commission from exercising its 806
authority under Title XLIX of the Revised Code to protect 807
customers of retail electric service supplied by an electric 808
utility from any adverse effect of the utility's provision of a 809
product or service other than retail electric service.810

       (B) The commission has jurisdiction under section 4905.26 of 811
the Revised Code, upon complaint of any person or upon complaint 812
or initiative of the commission on or after the starting date of 813
competitive retail electric service, to determine whether an 814
electric utility or its affiliate has violated any provision of 815
section 4928.17 of the Revised Code or an order issued or rule 816
adopted under that section. For this purpose, the commission may 817
examine such books, accounts, or other records kept by an electric 818
utility or its affiliate as may relate to the businesses for which 819
corporate separation is required under section 4928.17 of the 820
Revised Code, and may investigate such utility or affiliate 821
operations as may relate to those businesses and investigate the 822
interrelationship of those operations. Any such examination or 823
investigation by the commission shall be governed by Chapter 4903. 824
of the Revised Code.825

       (C) In addition to any remedies otherwise provided by law, 826
the commission, regarding a determination of a violation pursuant 827
to division (B) of this section, may do any of the following:828

       (1) Issue an order directing the utility or affiliate to 829
comply;830

       (2) Modify an order as the commission finds reasonable and 831
appropriate and order the utility or affiliate to comply with the 832
modified order;833

       (3) Suspend or abrogate an order, in whole or in part; 834

       (4) Issue an order that the utility or affiliate pay 835
restitution to any person injured by the violation or failure to 836
comply;837

       (D) In addition to any remedies otherwise provided by law, 838
the commission, regarding a determination of a violation pursuant 839
to division (B) of this section and commensurate with the severity 840
of the violation, the source of the violation, any pattern of 841
violations, or any monetary damages caused by the violation, may 842
do either of the following:843

       (1) Impose a forfeiture on the utility or affiliate of up to 844
twenty-five thousand dollars per day per violation. The recovery 845
and deposit of any such forfeiture shall be subject to sections 846
4905.57 and 4905.59 of the Revised Code.847

       (2) Regarding a violation by an electric utility relating to 848
a corporate separation plan involving competitive retail electric 849
service, suspend or abrogate all or part of an order, to the 850
extent it is in effect, authorizing an opportunity for the utility 851
to receive transition revenues under a transition plan approved by 852
the commission under section 4928.33 of the Revised Code.853

       Corporate separation under this section does not prohibit the 854
common use of employee benefit plans, facilities, equipment, or 855
employees, subject to proper accounting and the code of conduct 856
ordered by the commission as provided in division (A)(1) of this 857
section.858

       (E) Section 4905.61 of the Revised Code applies in the case 859
of any violation of section 4928.17 of the Revised Code or of any 860
rule adopted or order issued under that section.861

       Sec. 4929.05.  (A) As part of an application filed pursuant 862
to section 4909.18 of the Revised Code, aA natural gas company 863
may request approval of an alternative rate plan by filing an 864
application under section 4909.18 of the Revised Code, regardless 865
of whether the application is for an increase in rates. After 866
notice, investigation, andwhich may include a hearing, and after 867
determining just and reasonable rates and charges for the natural 868
gas company pursuant to section 4909.15 of the Revised Code,at 869
the discretion of the public utilities commission, the commission870
shall authorize the applicant to implement an alternative rate 871
plan if the natural gas company has made a showing and the 872
commission finds that bothall of the following conditions are 873
met:874

       (1) The natural gas company is in compliance with section 875
4905.35 of the Revised Code and is in substantial compliance with 876
the policy of this state specified in section 4929.02 of the 877
Revised Code;.878

       (2) The natural gas company is expected to continue to be in 879
substantial compliance with the policy of this state specified in 880
section 4929.02 of the Revised Code after implementation of the 881
alternative rate plan.882

       (3) The alternative rate plan is just and reasonable.883

       (B) The applicant shall have the burden of proof under this 884
section.885

       (C) No request may be made under this section prior to one 886
hundred eighty days after the effective date of this section.887

       Sec. 4929.051. (A) An alternative rate plan filed by a 888
natural gas company under section 4929.05 of the Revised Code and 889
proposing to initiate or continue a revenue decoupling mechanism 890
mayshall be considered an application not for an increase in 891
rates if the rates, joint rates, tolls, classifications, charges, 892
or rentals are based upon the billing determinants and revenue 893
requirement authorized by the public utilities commission in the 894
company's most recent rate case proceeding and the plan also 895
establishes, continues, or expands an energy efficiency or energy 896
conservation program.897

       (B) An alternative rate plan filed by a natural gas company 898
under section 4929.05 of the Revised Code and seeking 899
authorization to continue a previously approved alternative rate 900
plan shall be considered an application not for an increase in 901
rates.902

       Sec. 4929.11. Nothing in the Revised Code prohibits(A) Upon 903
an application filed under this section, and the public utilities 904
commission may allow, any automatic adjustment mechanism or device 905
in a natural gas company's rate schedules that allows a natural 906
gas company's rates or charges for a regulated service or goods to 907
fluctuate automatically in accordance with changes in a specified 908
cost or costs.909

       (B) Upon an application filed under section 4909.18 or 910
4929.05 of the Revised Code, the commission may allow any 911
automatic adjustment mechanism or device as described in division 912
(A) of this section.913

       Sec. 4929.111. (A) A natural gas company may file an 914
application with the public utilities commission under section 915
4909.18, 4929.05, or 4929.11 of the Revised Code to implement a 916
capital expenditure program for any of the following:917

       (1) Any infrastructure expansion, infrastructure improvement, 918
or infrastructure replacement program;919

       (2) Any program to install, upgrade, or replace information 920
technology systems;921

       (3) Any program reasonably necessary to comply with any 922
rules, regulations, or orders of the commission or other 923
governmental entity having jurisdiction.924

       (B) An application submitted under division (A) of this 925
section shall specify the total cost of the capital expenditure 926
program.927

        (C) If the commission finds that the capital expenditure 928
program is consistent with the natural gas company's obligation 929
under section 4905.22 of the Revised Code to furnish necessary and 930
adequate services and facilities, which services and facilities 931
the commission finds to be just and reasonable, the commission 932
shall approve the application. Any deferral or recovery authorized 933
under division (D) of this section shall be limited to amounts 934
that are no greater than those consistent with the total cost of 935
the capital expenditure program as set forth in the application, 936
unless the commission in its discretion authorizes additional 937
recovery under this section.938

       (D) In approving an application under division (C) of this 939
section, the commission shall authorize the natural gas company to 940
defer or recover in an application that the natural gas company 941
may file under section 4909.18, 4929.05, or 4929.11 of the Revised 942
Code, both of the following:943

       (1) A regulatory asset for the post-in-service carrying costs 944
on that portion of the assets of the capital expenditure program 945
that are placed in service but not reflected in rates as plant in 946
service;947

       (2) A regulatory asset for the incremental depreciation 948
directly attributable to the capital expenditure program and the 949
property tax expense directly attributable to the capital 950
expenditure program.951

       (E) The natural gas company may make any accounting accruals, 952
necessary to establish the regulatory assets authorized under 953
division (D) of this section, in addition to any allowance for 954
funds used during construction.955

       (F)(1) Any accrual for deferral or recovery under division 956
(D) of this section shall be calculated in accordance with the 957
system of accounts established by the commission under section 958
4905.13 of the Revised Code.959

       (2) The natural gas company shall calculate the 960
post-in-service carrying costs, described in division (D)(1) of 961
this section, for every investment in an asset of the capital 962
expenditure program. This calculation shall be based on the cost 963
of long-term debt of the natural gas company.964

       (G) Any accruals for deferral or recovery under division (D) 965
of this section shall commence when the assets of the capital 966
expenditure program are placed in service and shall cease when 967
rates reflecting the cost of those assets are effective. 968

       Sec. 4935.04.  (A) As used in this chapter:969

       (1) "Major utility facility" means:970

       (a) An electric transmission line and associated facilities 971
of a design capacity of one hundred twenty-five kilovolts or more;972

       (b) A gas or natural gas transmission line and associated 973
facilities designed for, or capable of, transporting gas or 974
natural gas at pressures in excess of one hundred twenty-five 975
pounds per square inch.976

       "Major utility facility" does not include electric, gas, or 977
natural gas distributing lines and gas or natural gas gathering 978
lines and associated facilities as defined by the public utilities 979
commission; facilities owned or operated by industrial firms, 980
persons, or institutions that produce or transmit gas or natural 981
gas, or electricity primarily for their own use or as a byproduct 982
of their operations; gas or natural gas transmission lines and 983
associated facilities over which an agency of the United States 984
has certificate jurisdiction; facilities owned or operated by a 985
person furnishing gas or natural gas directly to fifteen thousand 986
or fewer customers within this state.987

       (2) "Person" has the meaning set forth in section 4906.01 of 988
the Revised Code.989

       (B) Each person owning or operating a gas or natural gas 990
transmission line and associated facilities within this state over 991
which an agency of the United States has certificate jurisdiction 992
shall furnish to the commission a copy of the energy information 993
filed by the person with that agency of the United States.994

       (C) Each person owning or operating a major utility facility 995
within this state, or furnishing gas, natural gas, or electricity 996
directly to more than fifteen thousand customers within this state 997
annually shall furnish a report to the commission for its review. 998
The report shall be furnished annually, except that for a gas or 999
natural gas company the report shall be furnished every three 1000
years. The report shall be termed the long-term forecast report 1001
and shall contain:1002

       (1) A year-by-year, ten-year forecast of annual energy 1003
demand, peak load, reserves, and a general description of the 1004
resource plan to meet demand;1005

       (2) A range of projected loads during the period;1006

       (3) A description of major utility facilities planned to be 1007
added or taken out of service in the next ten years, including, to 1008
the extent the information is available, prospective sites for 1009
transmission line locations;1010

       (4) For gas and natural gas, a projection of anticipated 1011
supply, supply prices, and sources of supply over the forecast 1012
period;1013

       (5) A description of proposed changes in the transmission 1014
system planned for the next five years;1015

       (6) A month-by-month forecast of both energy demand and peak 1016
load for electric utilities, and gas sendout for gas and natural 1017
gas utilities, for the next two years. The report shall describe 1018
the major utility facilities that, in the judgment of such person, 1019
will be required to supply system demands during the forecast 1020
period. The report from a gas or natural gas utility shall cover 1021
the ten- and five-year periods next succeeding the date of the 1022
report, and the report from an electric utility shall cover the 1023
twenty-, ten-, and five-year periods next succeeding the date of 1024
the report. Each report shall be made available to the public and 1025
furnished upon request to municipal corporations and governmental 1026
agencies charged with the duty of protecting the environment or of 1027
planning land use. The report shall be in such form and shall 1028
contain such information as may be prescribed by the commission.1029

       Each person not owning or operating a major utility facility 1030
within this state and serving fifteen thousand or fewer gas or 1031
natural gas, or electric customers within this state shall furnish 1032
such information as the commission requires.1033

       (D) The commission shall:1034

       (1) Review and comment on the reports filed under division 1035
(C) of this section, and make the information contained in the 1036
reports readily available to the public and other interested 1037
government agencies;1038

       (2) Compile and publish each year the general locations of 1039
proposed and existing transmission line routes within its 1040
jurisdiction as identified in the reports filed under division (C) 1041
of this section, identifying the general location of such sites 1042
and routes and the approximate year when construction is expected 1043
to commence, and to make such information readily available to the 1044
public, to each newspaper of daily or weekly circulation within 1045
the area affected by the proposed site and route, and to 1046
interested federal, state, and local agencies;1047

       (3) Hold a public hearing:1048

       (a) On the first long-term forecast report filed after 1049
January 11, 1983;1050

       (b) At least once in every five years, on the latest report 1051
furnished by any person subject to this section;1052

       (c) On the latest report furnished by any person subject to 1053
this section if the report contains a substantial change from the 1054
preceding report furnished by that person. "Substantial change" 1055
includes, but is not limited to:1056

       (i) A change in forecasted peak loads or energy consumption 1057
over the forecast period of greater than an average of one-half of 1058
one per cent per year;1059

       (ii) Demonstrationupon the showing of good cause to the 1060
commission by an interested party.1061

       TheIf a hearing is held, the commission shall fix a time for 1062
the hearing, which shall be not later than ninety days after the 1063
report is filed, and publish notice of the date, time of day, and 1064
location of the hearing in a newspaper of general circulation in 1065
each county in which the person furnishing the report has or 1066
intends to locate a major utility facility and will provide 1067
service during the period covered by the report. The notice shall 1068
be published not less than fifteen nor more than thirty days 1069
before the hearing and shall state the matters to be considered.1070

       Absent a showing of good cause, the commission shall not hold 1071
hearings under division (D)(3) of this section with respect to 1072
persons who, as the primary purpose of their business, furnish gas 1073
or natural gas, or electricity directly to fifteen thousand or 1074
fewer customers within this state solely for direct consumption by 1075
those customers.1076

       (4) Require such information from persons subject to its 1077
jurisdiction as necessary to assist in the conduct of hearings and 1078
any investigation or studies it may undertake;1079

       (5) Conduct any studies or investigations that are necessary 1080
or appropriate to carry out its responsibilities under this 1081
section.1082

       (E)(1) The scope of the hearing held under division (D)(3) of 1083
this section shall be limited to issues relating to forecasting. 1084
The power siting board, the office of consumers' counsel, and all 1085
other persons having an interest in the proceedings shall be 1086
afforded the opportunity to be heard and to be represented by 1087
counsel. The commission may adjourn the hearing from time to time.1088

       (2) The hearing shall include, but not be limited to, a 1089
review of:1090

       (a) The projected loads and energy requirements for each year 1091
of the period;1092

       (b) The estimated installed capacity and supplies to meet the 1093
projected load requirements.1094

       (F) Based upon the report furnished pursuant to division (C) 1095
of this section and the hearing record, the commission, within 1096
ninety days from the close of the record in the hearing, shall 1097
determine if:1098

       (1) All information relating to current activities, 1099
facilities agreements, and published energy policies of the state 1100
has been completely and accurately represented;1101

       (2) The load requirements are based on substantially accurate 1102
historical information and adequate methodology;1103

       (3) The forecasting methods consider the relationships 1104
between price and energy consumption;1105

       (4) The report identifies and projects reductions in energy 1106
demands due to energy conservation measures in the industrial, 1107
commercial, residential, transportation, and energy production 1108
sectors in the service area;1109

       (5) Utility company forecasts of loads and resources are 1110
reasonable in relation to population growth estimates made by 1111
state and federal agencies, transportation, and economic 1112
development plans and forecasts, and make recommendations where 1113
possible for necessary and reasonable alternatives to meet 1114
forecasted electric power demand;1115

       (6) The report considers plans for expansion of the regional 1116
power grid and the planned facilities of other utilities in the 1117
state;1118

       (7) All assumptions made in the forecast are reasonable and 1119
adequately documented.1120

       (G) The commission shall adopt rules under section 111.15 of 1121
the Revised Code to establish criteria for evaluating the 1122
long-term forecasts of needs for gas and electric transmission 1123
service, to conduct hearings held under this section, to establish 1124
reasonable fees to defray the direct cost of the hearings and the 1125
review process, and such other rules as are necessary and 1126
convenient to implement this section.1127

       (H) The hearing record produced under this section and the 1128
determinations of the commission shall be introduced into evidence 1129
and shall be considered in determining the basis of need for power 1130
siting board deliberations under division (A)(1) of section 1131
4906.10 of the Revised Code. The hearing record produced under 1132
this section shall be introduced into evidence and shall be 1133
considered by the public utilities commission in its initiation of 1134
programs, examinations, and findings under section 4905.70 of the 1135
Revised Code, and shall be considered in the commission's 1136
determinations with respect to the establishment of just and 1137
reasonable rates under section 4909.15 of the Revised Code and 1138
financing utility facilities and authorizing issuance of all 1139
securities under sections 4905.40, 4905.401, 4905.41, and 4905.42 1140
of the Revised Code. The forecast findings also shall serve as the 1141
basis for all other energy planning and development activities of 1142
the state government where electric and gas data are required.1143

       (I)(1) No court other than the supreme court shall have power 1144
to review, suspend, or delay any determination made by the 1145
commission under this section, or enjoin, restrain, or interfere 1146
with the commission in the performance of official duties. A writ 1147
of mandamus shall not be issued against the commission by any 1148
court other than the supreme court.1149

       (2) A final determination made by the commission shall be 1150
reversed, vacated, or modified by the supreme court on appeal, if, 1151
upon consideration of the record, such court is of the opinion 1152
that such determination was unreasonable or unlawful.1153

       The proceeding to obtain such reversal, vacation, or 1154
modification shall be by notice of appeal, filed with the 1155
commission by any party to the proceeding before it, against the 1156
commission, setting forth the determination appealed from and 1157
errors complained of. The notice of appeal shall be served, unless 1158
waived, upon the commission by leaving a copy at the office of the 1159
chairperson of the commission at Columbus. The court may permit an 1160
interested party to intervene by cross-appeal.1161

       (3) No proceeding to reverse, vacate, or modify a 1162
determination of the commission is commenced unless the notice of 1163
appeal is filed within sixty days after the date of the 1164
determination.1165

       Section 2.  That existing sections 4903.083, 4905.302, 1166
4909.05, 4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 4909.17, 1167
4909.18, 4909.19, 4928.18, 4929.05, 4929.051, 4929.11, and 4935.04 1168
of the Revised Code are hereby repealed.1169